1. What is the loss to be reported in the income statement? On January 1, 2018 Kurt Corp. issued a 3-year, 4,000 convertible bonds at face value of P1,000 per bond. Interest is to be paid annually in arrears at the stated coupon rate of 6%. Each bond is convertible, at the holder's option, into 40, P10 par value ordinary shares at any time up to maturity. On the date of issuance, the prevailing market interest rate for similar debt without the conversion privilege was 9% On the same date, the market price of one common share was P12. On the issuance date, the company paid transactions costs totaling to P151,469, and as a result the yield rate increased by 1.5% All the 4,000 bonds were retired on January 1, 2020 when the prevailing yield rate on the bonds was at 9% without the conversion option, at P4,000,000, . 2. Comparing the entries made by the company and your should be entries, prepare one compound entry to adjust the affected accounts in considering the books are still open (On the space provided below, write the total amount of the debit side of your entry) CARNATION, Inc. inaugurated a new sales promotional program. For every 10 cereal box tops returned to Hope, customers will receive an attractive prize. Hope estimates that only 30% of the cereal box tops reaching the customers will be redeemed. Sale of cereal boxes (2,000,000 units) Purchase of prizes (36,000 units) Prizes distributed to customer, In units P 24,000,000 P 180,000 28,000 The accountant of CARNATION, Inc. journalized the purchase of prizes as: Debit to PREMIUM EXPENSE and a Credit to CASH. He just prepared a memo entry for prizes distributed